Finding 1205293 (2025-001)

FINDING No. 2025-001: Section 202 - Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Forty-three tenants. Sample Size Information: Five tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require: • Verification of initial income through the use of EIV reports within 90 days of move-in; • All lease addendums should be signed by the tenant and owner. Statement of Condition: Of the tenant files selected: • One tenant file did not contain verification of the initial income through the use of EIV reports; • Two tenant files were missing the tenant’s signatures on all lease addendums. Cause: The Project did not perform and/or maintain appropriate tenant eligibility and income verification documentation in accordance with HUD requirements. Effect or Potential Effect: Unable to verify tenant eligibility and improper maintenance of tenant files as it relates to lease addendums. Auditor Non-Compliance Code: R – Section 8 Program Administration. Reporting Views of Responsible Officials:The Project agrees with the finding and the auditor's recommendations will be adopted. Recommendation: The Project should implement procedures to ensure that all required tenant eligibility steps are performed in accordance with HUD regulations and to ensure that all documentation related to tenants is properly executed and maintained. Response Indicator: Agree. Completion Date: 9/30/2026 Response: Staff training has been provided with additional HUD training inclusive of eligibility requirements and included in monthly reporting procedures.